What is the AXIS Disability Module used for?
It models disability insurance policies that pay lump-sum or income replacement benefits, including short-term and long-term disability, long-term care, critical illness, and related products.
What is COLA in disability insurance?
COLA stands for Cost of Living Adjustment. It increases disability benefits periodically to keep up with inflation or a defined index.
How does AXIS model COLA?
AXIS applies periodic benefit increases to ongoing disability payments according to specified rates or inflation indices.
What is the Waiver of Premium feature in disability insurance?
It waives future premium payments while the insured is disabled, keeping the policy in force without requiring premium payments.
How does AXIS model Waiver of Premium?
AXIS suspends premium payments during disability status while continuing coverage and benefit accruals.
What does Integration of Benefits with Other Income mean?
It reduces disability benefits based on income received from other sources, such as Social Security or employer benefits.
How does AXIS model Integration of Benefits?
AXIS subtracts other specified income amounts from the gross disability benefit according to defined coordination rules.
What is a Return of Premium option in disability insurance?
It refunds a portion of premiums paid if no claim or limited claims occur over the policy term.
How does AXIS model Return of Premium?
AXIS generates a refund cash flow at policy termination or milestone, contingent on claim experience and contract rules.
Why are multiple reinsurance treaties important in disability modeling?
Different treaties may cover varying claim sizes or durations, allowing the insurer to share risk across multiple reinsurers.
How does AXIS handle multiple reinsurance treaties?
AXIS supports several treaty structures, automatically allocating premiums, claims, and recoveries to the appropriate treaty.
What are policy riders in disability insurance?
Additional benefits or provisions attached to the base policy, such as partial disability, survivor benefits, or hospital confinement riders.
How does AXIS model policy riders with the base policy?
AXIS links riders as sub-components of the main policy, sharing assumptions and synchronized claim status where appropriate.
What are multiple decrement assumptions in disability modeling?
Assumptions for various ways the policy or claim can terminate, such as recovery, death, lapse, or policy maturity.
How does AXIS use multiple decrement assumptions?
AXIS applies decrement tables for recovery, death, and lapse, ensuring probabilities are consistent and mutually exclusive.
What is policyholder behavior modeling in disability insurance?
It models actions such as lapses, claim initiation, and benefit utilization based on policyholder characteristics and external factors.
How does AXIS implement policyholder behavior modeling?
AXIS allows dynamic behavior assumptions tied to variables like claim duration, age, or economic indicators.
What does it mean that Active and Disabled lives can be modeled simultaneously in AXIS?
AXIS can model both active insureds and those currently disabled within the same projection, transitioning between states dynamically.
What does the Total Benefit Paid Cap feature do?
It limits the total amount payable under the policy across all claims, ensuring benefits do not exceed a specified maximum.
What is a Flexible Lump Sum feature in disability insurance?
Allows policies to pay a one-time lump-sum benefit upon disability, with flexible timing or amount rules defined by the policy.
What is a Death Benefit while Disabled feature?
Provides a benefit payable upon death occurring during a period of disability.
How does AXIS model Total Benefit Paid Cap, Flexible Lump Sum, and Death Benefit while Disabled?
AXIS includes configurable parameters to cap total benefits, define lump-sum payments, and pay death benefits during disability periods.
Why is the AXIS Disability Module considered comprehensive?
It models a wide range of disability and health-related products with detailed claim states, multiple decrements, policyholder behavior, reinsurance, and advanced benefit options.
